A(n) ___________ occurs when cash leaves the U.S. Treasury.

Answer:
  • Outlay

Which one of the following best reflects how a DoD acquisition program manager should go about implementing the CAIV philosophy?

Answer:
  • Trading off specific performance parameters of the system to achieve program cost objectives

A life cycle cost estimate that is broken down by appropriation categories will:

Answer: 
  • Include a category called RDT&E

The term that consists of Development Cost plus Procurement Cost plus the cost of facilities is:

Answer:  Program Acquisition Cost

Which one of the following organizations is responsible for preparing independent cost estimates for all ACAT ID programs?

Answer:
  • OSD Cost Analysis Improvement Group (CAIG)

What cost estimating technique would be most appropriate for the following situation? The Marine Corps is examining several early alternatives to meet a particular mission need. To support that effort, they need some high-level (i.e., less accurate) cost estimates to weigh against operational effectiveness. The program is very early in the life cycle. Only one similar historical system exists for each alternative approach being considered.

Answer:
  • Analogy

The _____________ method estimates costs from the bottom up using a detailed work breakdown structure (WBS).

Answer:  Engineering

The following costs pertain to the BLUEJAY system:

Answer:
  • 2686
Reasoning:
  • Development Cost = $450 million 
  • Facilities Cost = $95 million 
  • Procurement Cost = $1075 million 
  • Disposal Cost = $67 million 
  • Operating and Support Cost = $999 million 
  • Based on this information, the Life-Cycle Cost for the BLUEJAY system is $ _______ million. (Please do NOT add the word "million" or a Dollar sign or a comma in your answer.)

Which of the following is NOT a purpose of the Analysis of Alternatives (AoA)?

Answer:
  • Developing a complete description of the system

Which one of the following best reflects how a DoD acquisition program manager should go about implementing the CAIV philosophy?

Correct Answer:

An 80% learning curve has been observed for the production of the MEERKAT system. If the 5th production unit’s recurring cost is $1 million, what will be the recurring cost for the 10th production unit? Assume that the production line is continuous and that the learning curve does not change. 
$900,000 $800,000 $500,000 $640,000 

Incorrect Answer:
  • Trading off schedule to achieve objective levels of system performance

An 80% learning curve has been observed for the production of the MEERKAT system. If the 5th production unit's recurring cost is $2 million, what will be the recurring cost for the 10th production unit? Assume that the production line is continuous and that the learning curve does not change.

Answer:
  • $1600,000

Activity Based Costing can be used for which of the following purposes?

Answers:

  • All of the following answers are correct:
    • To identify product cost drivers
    • To set prices
    • To identify opportunities for process improvement